IDEAS home Printed from https://ideas.repec.org/p/gra/wpaper/17-02.html
   My bibliography  Save this paper

Random Lottery Incentive Mechanism in Dynamic Choice Experiments

Author

Listed:
  • Maria J. Ruiz Martos

    (Department of Economic Theory and Economic History, University of Granada.)

Abstract

Cubitt, Starmer and Sugden [TheEconomic Journal, 108, 1362-80, (1998)] pose a dynamic choice argument against the random lottery incentive (RLIS) mechanism. To wit, the RLIS relies on principles of dynamic choice. Thus, experimental research on the dynamic choice principles should be conducted ina single choice design. This study attempts to evaluate the empirical validity of their argument by quasi-replicating their single choice experiment in a RLIS design. Results suggest that one may use the RLISin dynamic choice experiments.

Suggested Citation

  • Maria J. Ruiz Martos, 2017. "Random Lottery Incentive Mechanism in Dynamic Choice Experiments," ThE Papers 17/02, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:17/02
    as

    Download full text from publisher

    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers17_02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McClennen,Edward F., 1990. "Rationality and Dynamic Choice," Cambridge Books, Cambridge University Press, number 9780521360470.
    2. Nathalie Etchart, 2002. "Adequate Moods for non-eu Decision Making in a Sequential Framework," Theory and Decision, Springer, vol. 52(1), pages 1-28, February.
    3. Sarin, Rakesh & Wakker, Peter P, 1998. "Dynamic Choice and NonExpected Utility," Journal of Risk and Uncertainty, Springer, vol. 17(2), pages 87-119, November.
    4. Joseph Johnson & Jerome Busemeyer, 2001. "Multiple-Stage Decision-Making: The Effect of Planning Horizon Length on Dynamic Consistency," Theory and Decision, Springer, vol. 51(2), pages 217-246, December.
    5. Cubitt, Robin P & Starmer, Chris & Sugden, Robert, 1998. "Dynamic Choice and the Common Ratio Effect: An Experimental Investigation," Economic Journal, Royal Economic Society, vol. 108(450), pages 1362-1380, September.
    6. Cubitt, Robin P, 1996. "Rational Dynamic Choice and Expected Utility Theory," Oxford Economic Papers, Oxford University Press, vol. 48(1), pages 1-19, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria J. Ruiz Martos, 2017. "Individual Dynamic Choice Behaviour and the Common Consequence Effect," ThE Papers 17/01, Department of Economic Theory and Economic History of the University of Granada..
    2. Maria J. Ruiz Martos, 2018. "Sequential Common Consequence Effect and Incentives," ThE Papers 18/04, Department of Economic Theory and Economic History of the University of Granada..
    3. Hammond, Peter J. & Zank, Horst, 2013. "Rationality and Dynamic Consistency under Risk and Uncertainty," Economic Research Papers 270426, University of Warwick - Department of Economics.
    4. Nathalie Etchart, 2002. "Adequate Moods for non-eu Decision Making in a Sequential Framework," Theory and Decision, Springer, vol. 52(1), pages 1-28, February.
    5. Hammond, Peter J & Zank, Horst, 2013. "Rationality and Dynamic Consistency under Risk and Uncertainty," The Warwick Economics Research Paper Series (TWERPS) 1033, University of Warwick, Department of Economics.
    6. ,, 2011. "Dynamic choice under ambiguity," Theoretical Economics, Econometric Society, vol. 6(3), September.
    7. Antoine Nebout & Marc Willinger, 2014. "Are Non-Expected Utility individuals really Dynamically Inconsistent? Experimental Evidence," Working Papers 14-08, LAMETA, Universtiy of Montpellier, revised Jul 2014.
    8. John D. Hey & Luca Panaccione, 2018. "Dynamic decision making: what do people do?," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 10, pages 235-273, World Scientific Publishing Co. Pte. Ltd..
    9. John Hey & Massimo Paradiso., "undated". "Dynamic Choice and Timing-Independence: an experimental investigation," Discussion Papers 99/26, Department of Economics, University of York.
    10. Robin Cubitt & Maria Ruiz-Martos & Chris Starmer, 2012. "Are bygones bygones?," Theory and Decision, Springer, vol. 73(2), pages 185-202, August.
      • Robin Cubitt & Maria Ruiz-Martos & Chris Starmer, 2005. "Are bygones bygones?," Discussion Papers 2005-21, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
      • Robin Cubitt & Maria Ruiz-Martos & Chris Starmer, 2010. "Are bygones bygones?," Discussion Papers 2010-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
      • Robin Cubitt & Maria Ruiz-Martos & Chris Starmer, 2005. "Are bygones bygones?," Discussion Papers 2005-21, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
      • Robin Cubitt & Maria Ruiz-Martos & Chris Starmer, 2010. "Are bygones bygones?," Discussion Papers 2010-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    11. John D. Hey & Gianna Lotito, 2018. "Naive, resolute or sophisticated? A study of dynamic decision making," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 11, pages 275-299, World Scientific Publishing Co. Pte. Ltd..
    12. John D. Hey, 2005. "Do People (Want To) Plan?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 122-138, February.
    13. A. Nebout, 2014. "Sequential decision making without independence: a new conceptual approach," Theory and Decision, Springer, vol. 77(1), pages 85-110, June.
    14. Dominiak, Adam & Duersch, Peter & Lefort, Jean-Philippe, 2012. "A dynamic Ellsberg urn experiment," Games and Economic Behavior, Elsevier, vol. 75(2), pages 625-638.
    15. Simon Grant & Atsushi Kajii & Ben Polak, 2000. "Preference for Information and Dynamic Consistency," Theory and Decision, Springer, vol. 48(3), pages 263-286, May.
    16. Bleichrodt, Han & Eichberger, Jürgen & Grant, Simon & Kelsey, David & Li, Chen, 2021. "Testing dynamic consistency and consequentialism under ambiguity," European Economic Review, Elsevier, vol. 134(C).
    17. Fumagalli, Roberto, 2021. "Rationality, preference satisfaction and anomalous intentions: why rational choice theory is not self-defeating," LSE Research Online Documents on Economics 112446, London School of Economics and Political Science, LSE Library.
    18. Esponda, Ignacio & Vespa, Emanuel, 2023. "Contingent Thinking and the Sure-Thing Principle: Revisiting Classic Anomalies in the Laboratory#," University of California at San Diego, Economics Working Paper Series qt32j4d5z2, Department of Economics, UC San Diego.
    19. Nielsen, Thomas D. & Jaffray, Jean-Yves, 2006. "Dynamic decision making without expected utility: An operational approach," European Journal of Operational Research, Elsevier, vol. 169(1), pages 226-246, February.
    20. Li, Chen & Turmunkh, Uyanga & Wakker, Peter P., 2020. "Social and strategic ambiguity versus betrayal aversion," Games and Economic Behavior, Elsevier, vol. 123(C), pages 272-287.

    More about this item

    Keywords

    experiments; payment approaches; non-expected utility and risk; dynamic choice principles;
    All these keywords.

    JEL classification:

    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gra:wpaper:17/02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Angel Solano Garcia. (email available below). General contact details of provider: https://edirc.repec.org/data/dtugres.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.